T he Revenue men Sir: It may assist the public discussion
of the Powers that the Revenue are seeking to obtain in Clause 48 of the Finance Bill, if I could say why in view of my own experience taLs a solicitor in the Inland Revenue I think unse powers to be unnecessary. The types of tax evasion that occur can ntgblY be divided into three categories: `.vasion by not declaring trading profits; eva31°, n by making claims to relief from tax, to W.nich the claimant is not entitled; and evann by not applying PAYE. L'ading Profits ?st evasion connected with trading profits " nealt with by the local inspector. He never a .es to my knowledge the powers now con'ined in Section 20 Taxes Management Act 970 to obtain the taxpayer's books of acetnUnt. From this it automatically follows hi-lat if he does not need to use the powers ‘1‘"" in his possession, he does not need to i'„se the Proposed powers, which are intended replace Section 20 in its present form. t'Yhat bat he normally does is this: if he suspect's a. something is amiss in the taxpayer s vf:fairs, he will invite the taxpayer to an inter,levv. He then informs the taxpayer of his 'ttsons and asks him whether he will a4ree to co-operate with an inquiry into his h. airs. If the taxpayer agrees (and most do) "Is accountant will prepare a capital state1W11.ent. A capital statement contains a list at Ith their values of all the taxpayer's assets Yearly rest, a list of his annual expenses a list of his declared income. The inhi.ease in value of his assets over the year and this expenditure are added together; from at total is subtracted his known incomings declared income and legacies); the difTerence is presumed to be undeclared profits. ax, interest and penalties are payable in 'esPect of them u At any one time fifty to seventy'people are nInder investigation in any one district ; this h_"eans that about fifty thousand people are Lder inquiry at any one time. sr, arge cases are referred to specialist in n .!'ectors of taxes at Inquiry Branch. They the rate in much the same way. However is do make their own investigations and it `lue,Y who will use the powers. t is in the nature of investigatory work to "nse the investigators to be high-handed. In sr, arge cases are referred to specialist in n .!'ectors of taxes at Inquiry Branch. They
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